Illinois’ Clean and Reliable Grid Affordability Act Enacts New Statewide Zoning Standards for Energy Storage Systems

Illinois has taken another significant step toward standardizing local regulation of clean energy infrastructure. On Jan. 8, 2026, Governor J.B. Pritzker signed into law Public Act 104-0458, known as the Clean and Reliable Grid Affordability Act (CRGA), which became effective on June 1, 2026. Among its many provisions, CRGA added new Section 5-12024 to the Illinois Counties Code (55 ILCS 5/5-12024), establishing statewide zoning and permitting standards for certain commercial energy storage systems.

Under CRGA, an “energy storage system” is generally defined as a facility with an aggregate energy capacity greater than 1,000 kilowatts (1 MW) that is capable of absorbing energy, storing that energy for a period of time, and dispatching it for later use. Notably, the statute is directed at stand-alone energy storage facilities and excludes energy storage systems associated with commercial solar or commercial wind energy projects.

The CRGA closely parallels the framework established by the Renewable Energy Facilities Act (REFA), enacted in 2023, which created statewide standards limiting the extent to which local governments may impose more restrictive zoning requirements on commercial wind and solar energy projects. With the adoption of Section 5-12024, Illinois has now extended a similar statewide approach to stand-alone energy storage projects, an area that REFA did not directly address.

For practitioners representing landowners, developers, or other stakeholders involved in energy storage projects, the statute is particularly noteworthy because many of its siting, operational, and decommissioning requirements are likely to be incorporated into project agreements and site control documents. A summary of several key provisions follows.

Key Provisions of Section 5-12024

• If a county has adopted zoning regulations pursuant to Section 5-12007 of the Illinois Counties Code, it may regulate energy storage systems, provided that its regulations are not more restrictive than the standards set forth in Section 5-12024.
• A county may require energy storage systems to comply with the National Fire Protection Association’s Standard for the Installation of Stationary Energy Storage Systems (NFPA 855), as in effect on the effective date of CRGA or any successor version thereof.
• A county must issue a decision on a siting or permitting application within thirty (30) days following the conclusion of the public hearing on the application.
• Counties with ordinances that conflict with Section 5-12024 must amend those ordinances to comply with the statute within 120 days after June 1, 2026.
• Counties must require minimum setbacks of:
  • 150 feet from occupied community buildings and nonparticipating residences;
  • 50 feet from the property line of a nonparticipating property; and
  • 50 feet from the nearest public right-of-way.

These setback requirements may be waived with the written consent of the affected nonparticipating landowner.

• Energy storage systems must be enclosed by fencing that is at least seven (7) feet and not more than twenty-five (25) feet in height.
• Counties may not impose sound limitations that are more restrictive than those established by the Illinois Pollution Control Board.
• Counties may not adopt siting standards that effectively prohibit all energy storage development within the county and may not exclude energy storage systems from all zoning districts that permit agricultural or industrial uses.
• County siting approval fees and special use permit fees may not exceed the lesser of:
  • $5,000 per megawatt of nameplate capacity; or
  • $50,000.
• Counties may require the submission of a decommissioning plan, including any requirements authorized under NFPA 855.
• Counties may require the project owner, within eighteen (18) months following the end of the project’s useful life, to:
  • remove all above-ground facilities and underground facilities to a depth of three (3) feet;
  • restore affected soils and vegetation to conditions as close as reasonably possible to their pre-construction condition; and
  • use commercially reasonable efforts to reuse or recycle equipment and components associated with the facility.
• Counties may require decommissioning financial assurance for the benefit of the county or the participating landowner in an amount equal to the estimated decommissioning cost, less salvage value, as determined by a qualified professional engineer retained by the developer. Such financial assurance may be phased in as follows:
  • 25% upon commencement of commercial operation;
  • 50% by the beginning of the fifth year of commercial operation; and
  • 100% by the beginning of the tenth year of commercial operation.

Counties may not require updates to the decommissioning estimate more frequently than once every five years during the operational life of the project.

• Counties may not condition approval on a property value guarantee and may not require contributions to a neighboring property devaluation escrow account.
• Counties may not prohibit periodic augmentation of an energy storage system to maintain the system’s approximate original capacity and may not require new or additional siting approval or a special use permit solely because of such augmentation.
• Counties must review and process building permit applications within sixty (60) days after receipt. Failure to approve or deny an application within that period results in the permit being deemed approved.
• Prior to commercial operation, counties may require the developer to submit a commissioning report, hazard mitigation analysis, and emergency response plan meeting the applicable requirements of NFPA 855.
• Prior to commercial operation, the developer must offer training to local fire departments and emergency responders consistent with the project’s emergency response plan and provide copies of that plan to such agencies.
• Batteries incorporated into an energy storage system must be listed under the UL 1973 standard and comply with the UL 9540 standard, either through manufacturer certification or field evaluation.

Conclusion

With the enactment of CRGA and the addition of Section 5-12024 to the Illinois Counties Code, Illinois has extended its statewide approach to renewable energy siting and permitting to stand-alone energy storage systems. The legislation fills a regulatory gap left by prior renewable energy legislation, provides greater certainty for project developers and local governments, and offers practitioners a useful roadmap when negotiating and drafting site control agreements, leases, decommissioning provisions, and other project documentation associated with energy storage development.